Audit 401553

Finding 2024-003 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding: Compliance – Other Matters Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement: Uniform Guidance (2 CFR Part 200, including § 200.302 and 200.303) requires non-federal entities administering federal awards to establish and maintain effective internal controls over federal programs. Entities must document written policies and procedures covering key areas such as financial management, internal controls, procurement, subrecipient monitoring, and cash management. Condition and Context: The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. This includes but is not limited to areas such as financial management, procurement, subrecipient monitoring, and cash management. Cause: The Town has not developed or implemented comprehensive written policies and procedures governing the management and administration of federal awards. Effect or Potential Effect: The absence of written policies and procedures increases the risk of noncompliance with federal regulations, inconsistent administration of grant requirements, and potential mismanagement of federal funds. No questioned costs are noted as the requirement is procedural in nature. Recommendation: Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official: Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.